Apple reports $114.5bn revenue as memory costs surge

Apple announced quarterly revenue of $114.5 billion, a 12 % year‑on‑year increase, despite “unprecedented” memory shortages.

The iPhone maker said net product sales reached nearly $83 billion and iPhone revenue grew 17.5 % to more than $57 billion, helped by its latest product launches, including a foldable smartphone.

All segments posted growth except Japan, while iPad, wearables and other gadget sales fell. The company’s gross margin was 47.9 %, aided by tariff refunds that have largely been paid.

CEO John Ternus, speaking on his first earnings call, warned that memory pricing is “unprecedented” and expects even higher costs in the December quarter. Apple offset some pressure by raising prices, with increases ranging from €40 for the HomePod Mini to nearly €1,000 for the Mac Studio M3 Ultra, and about €90 for iPhones.

Chief financial officer Kevan Parekh said Apple projects revenue growth of 7 % to 10 % for the next quarter, its “best view of constrained supply”, while analysts forecast around 6.1 %.

Apple also raised its manufacturing purchase commitments by $33 billion from the June to September quarter to improve supply amid ongoing chip shortages linked to the AI boom.

Source: Silicon Republic. Photo: Pixabay / Pexels.